No Confidence Motion

Minister's credit card payment act of bribery - Dr. Rajitha Senaratne

UNP National List MP Dr. Rajitha Senaratne moving a no-confidence motion against Posts, Telecommunications and Media Minister Mangala Samaraweera on the credit card issue yesterday charged that the payment of Rs. 277,852.41 by Sri Lanka Telecom Chief Executive Officer, Hideki Kamitsuma out of his personal account, to settle expenses incurred by Minister Samaraweera on the credit card issued to him, constituted an act of bribery by the Japanese NTT which bought shares in Sri Lanka Telecom.

The signatories to the no-confidence motion were Dr. Rajitha Senaratne, Kabir Hashim, Mervyn Silva, Tyronne Fernando, Joseph Michael Perera and W. J. M. Lokubandara.

Dr. Senaratne said the credit card issue was first exposed in the 'Sunday Leader' newspaper on May 6, 1998. The Bank of Ceylon had issued the first credit card with a value of Rs. 250,000 to Minister Samaraweera for the period January to April, 1998. A second card to the same value was issued for the April to May, 1998 period inspite of the fact that the expenditure on the first credit card remained unsettled. This was perhaps the first time a bank was issuing a second credit card while the expenditure incurred on the first one remained unsettled, he added.

Japan's NTT purchased minority shares of SLT but the Japanese enjoy full management rights. It's the same with the buyer of minority Air Lanka shares who also enjoy similar full management rights, he said.

Dr. Senaratne said that SLT CEO, Hideki Kamitsuma paid by cheque out of his personal account Rs. 277,852.41 to the Bank of Ceylon in settlement of the dues on the first credit card. Though the Minister in a statement to a newspaper said that when he came to know about it, he got the bank to stop payment on the cheque, what really happened was that the cheque was dishonoured. This cheque went back with the endorsement 'Refer to Drawer'. This is the language banks use when they turn down payment due to lack of funds in an account. The cheque had been drawn against Mr. Kamitsuma's personal account No. 68101327, the MP said.

He added that Kamitsuma is the CEO at SLT representing Japanese NTT which purchased minority shares at a very low price. It looks like Kamitsuma is now paying the Minister, he charged.

The 'Sunday Leader' under the heading "Damning admission by Kamitsuma" published on May 17, 1998 an interview with the latter. In this interview, Kamitsuma had stated that the credit card issued to the Minister was helpful to the SLT because there was a promotional potential in it for the SLT abroad.

When the interviewer questioned Kamitsuma whether payment had been made earlier from his personal account he had replied in the negative.

Though he had also said it was an advance Komitsuma failed to give any precedences.

Komitsuma's claim that there was some urgency about the settlement of the dues on the first credit card, there appears to have been no urgency from January to April. It there was an urgency as alleged, the Board of Directors of SLT which met in mid-April could have discussed this issue and a decision could have been taken to pay it from the SLT funds. No such thing ever took place, Dr. Senaratne said.

On 16th or 17th of April 1998 Komitsuma wrote a letter to the Bank of Ceylon directing the bank to debit the dues of the first credit card to his personal account?

Is this not an act of bribery and corruption? he asked.

Furthermore chief accounting officer of SLT Thagami in an interview published by 'The Island' newspaper has denied any knowledge of the cheque concerned. He has not signed it.

The whole thing is a transaction between nobody but Minister Samaraweera and Komitsuma?

The Minister had made a blatantly untrue statement to journalist Fredrica Jansz that he received credit card to the value of USD 5000 for his official expenses abroad.

When the Minister made the statement the list of expenditure incurred by him was not in our possession? Now we have that list.

The Minister's argument when he was questioned by Jansz was that he needed money to return gestures when he goes abroad and enjoyed hospitality of foreign personalities. But he had failed to give a breakdown of the expenditure when Jansz called for it. We have it right now and will reveal to the House in the course of my speech.

The Minister in the same interview has tried to justify the credit card deal by saying that there was nothing wrong in the manner things went on as there was a common agreement on the manner in which it should take place, between the chief officer of an undertaking and the Minister.

The President herself has prohibited the use of the moneys of enterprises to meet the expenditure of the ministries concerned.

Minister Samaraweera has violated this very directive of his own President.

The circulars issued by the Treasury sets out the guidelines for the expenditure of funds by ministers going abroad. The Minister has violated the provisions of three such circulars, he said.

In an interview with the 'Daily News' Minister Samaraweera has stated that ministers going on foreign journeys required additional money both to save the prestige of the country and to safeguard the integrity of the ministerial positions.

Banks issue credit cards for one year. But in the case of the credit card issued to Minister Samaraweera two credit cards have been issued between January and April.

The Minister had pumped out untruths to cover up the credit card scandal but every statement he made exposed that he was not telling the truth.

The Minister had stated a Minister on a foreign tour is entitled to USD 7500 and a Deputy Minister USD 5000.

But Deputy Minister Hisbullah or Anura Priyadarshana Yapa have not made use of this concession.

Anura Priyadarshana Yapa: I had no opportunity to go abroad. Had I had, I would have made use of it.

Rajitha Senaratne: The Minister interviewed by the "Lankadeepa" has stated that a credit card cannot be technically used by a person other than the person to whom it has been issued.

But now the Minister is trying to say that his credit card has fallen into the hands of others.

The Minister has also told "Lankadeepa" that the B. C. Perera circular relating to use of public funds did not apply to SLT. Please place before the House if you have any documents to substantiate your claim.

If SLT is a private company the credit card issued must be a bribe, Dr. Senaratne said.

The Minister had been saying that the moneys were spent in the interest of the country. But the list of bills we have in possession, with dates it is clear that the credit card has been used to purchase Keells products and to pay lunch bills. A massive sum of Rs. 17,998.05 has been spent to purchase liquor from Orient Lanka. Purchasers have also been made from St, Anthony's Consolidated Company Ltd. All this expenditure has been made locally. Purchases have been made at duty free shops as well.

It appears that somebody has put Komitsuma into trouble. Are you saying that it was Hemasiri Fernando?

The Minister has told newspapers that he was not accountable to SLT, that his senior assistant secretary was keeping a separate list of personal expenditure he incurred out of the credit card and that only the official expenditure is transferred to SLT and the personal expenditure is met by him out of his own money.

Komitsuma is not paying any tax for his salary. He is therefore paying the Minister, he charged.

One day the Minister said journalists could be bought over a bottle of arrack. Later he threw a party for journalists at Hilton Hotel and whisky was served in place of arracks.

They may drink whisky but do not forget they have a conscience, he said.

The credit card has also been used to see blue films. You told a newspaper that the allegation has been referred to the CID for investigation. Where is the CID report, the MP queried.

The SLT was to spend Rs. 88 lakhs to celebrate its first anniversary after privatisation. Out of that only Rs. 100,000 to be spent for the pirith ceremony, the rest goes for extravaganzas, he added.

I have a copy of the top secret letter the Minister sent to the Bank of Ceylon demanding Rs. 150 million as damages for revealing particulars of expenditure in his credit card.

The blue films watched and paid for by the credit card involves sexual abuse of children a subject some parliamentarians of this House were trying to stamp out.

Our ministers are spending lavishly when half the nation is in hunger.

It is this very same Minister who said during the debate on Susanthika, that to his eyes, Susanthika is no more than a black American man.

Kingsley T. Wickremaratne, Minister of Internal & International Commerce and Food said: It was Bernard Shaw who said 'When a man starts throwing dirt, you can be sure he is losing ground, and Bernard Shaw went on to say, Never throw mud, you may miss your mark, and you are bound to have dirty hands'.

In fact mud slinging is the latest political weapon in the hands of the UNP.

After this debate, they will have their own mud in their hands.

The facts in the previous speech seemed to be confusing.

In the notice of the motion the allegation is that Mangala Samaraweera obtained a Credit Card to defray his official expenses while abroad. He obtained a Credit Card through Sri Lanka Telecom Ltd. under his Ministry in contravention of the Govt. Financial Regulations and Finance Ministry Directive.

It's totally incorrect. I must say the Minister had not contravened any Govt's Financial Regulations and Finance Ministry Directives.

Far back in 1992, during the regime of the previous govt. the then Deputy Secretary to the Treasury, made an allocation to the former Secretary of Posts & Telecommunications of Rs. 500,000 to meet the expenses of the Minister and the Deputy Minister with regard to overseas travel.

Accordingly, SLTL issued monthly cheques amounting to Rs. 50,000 in favour of the Deputy Secretary to the Treasury. Upon receipt of these cheques in the General Treasury, the DST issued additional allocations under Treasury miscellaneous vote to this ministry to meet the above mentioned expenditure. This also had the acceptance of the Director General Budget.

After the joint venture between Telecom and NTT, the procedure was discontinued, and adopted a procedure where S/P & T to certify bills and refer to the Director Finance of SLT to pay, where any foreign travel was undertaken by the Minister or Deputy Minister.

When the new Board took over after the creating of the joint venture, this procedure was continued and ratified by the Board of Directors of SLTL.

On April 22, 1998, the Board of Directors of the New Joint Venture Company met, decided and approved the following resolution, 'that an annual expenditure of US dollars 7500 for the Minister and US dollars 5000 for the Deputy Minister in respect of expenses for foreign travel be allocated".

On this issue I would like to quote an article written by Mr. Upatissa Hulugalle, which appeared in the 'Sunday Island' on July 26, 1998. Mr. Hulugalle is an eminent Accountant and was the Financial Consultant to the late Mr. Upali Wijewardane.

He says 'even the criticism of Mangala Samaraweera's credit card issue seems so unfair when he used the credit card in performing duties as a minister of telecommunications. All directors of private sector companies spend several times his figure.

The most admired UNPers who were all killed by the LTTE spent hundreds of millions from their corporations, statutory bodies and departments and at that time there were no local credit cards. The three were vying for the presidency, and if one goes through the accounts of these bodies, one will be able to find out what was spent on helicopter travel, foreign travel, gamudawas, co-ordinating secretaries inclusive of Pajeros etc. which were all for their election work. They also had ad lib expense accounts from friends who had won government tenders. So it's evident that Mangala Samaraweera had not committed any offence, because he used this credit card while performing his duty as the Minister for Telecommunications.

Why is the UNP slinging mud at the ministers specially at Mangala Samaraweera?

The answer is simple. They have nothing else to do.

The economy is doing extremely well - 6 pc growth with the war-on. The highest in the region. In fact, most of leaders at the SAARC Summit were surprised that the Sri Lanka economy is doing so well with the war on - because, the economic fundamentals of President Chandrika Kumaratunga is on the right path.

Exports have increased by 20.9 pc over the previous year. Computer technology has gone even to the rural areas - internet familiarization is taking place in schools in Anuradhapura, Polonnaruwa, Matara and urban areas like Homagama and Kaduwela and the living standard of the rural people is on the rise. Even houses with 'Warichchi Biththi & Takaran Roofs' are having electricity and telephones. During the last 17 years of the UNP regime, they installed only 92000 telephones.

But Mangala Samaraweera when he took office as Minister of Posts & Telecommunications had a plan of action and a target of million telephones by the year 2000. Last year alone he had installed 127,000 telephones, more than what the UNP did in 17 years. Only 92,000 telephones were provided in 17 years.

Naturally the UNP is jealous of the young minister, the youngest in the cabinet. They hate his style, even the way he dresses. He is one of the finest designers in the country. They hate his guts because he is outspoken. They hate his courage and conviction, because he is not afraid to call a spade a spade.

They hate his frankness - because he does not hide his private life unlike most UNPers.

They hate him because he is moving with the times with new technology into the 21st Century.

They hate him because he uses E-business by using the Plastic Cards instead of the old concept of the Travellers Cheques.

In fact, most developed countries now do not accept Travellers Cheques. They ask for Plastic Cards and the cost of transaction, or a credit card is much less than in the face to face banking of travellers cheques.

In fact most hotels in developed countries now insist payment by Credit Card otherwise, if it's by Travellers Cheques they have to keep a deposit.

The UNP also hates him, because he is too transparent.

They hate him because he is in the forefront of the Peace Movement - with Sudu Nelum, a dream and a concept of the President.

They hate him so much that they want to destroy the political career of this young minister.

This motion brought forward by the UNP is like the 'Monica Lewinsky allegation in the USA creating a mountain out of a molehill.

Here I would like to quote the 'Sunday Times' of July 26, 1998, by Frederica Jansz a very respected journalist. Minister Mangala Samaraweera's credit card, and running $ 2000 bill thrusting him at the centre of a framed-up sex scandal'.

So, the UNP in order create a mountain out of a molehill what did they do? The UNP stooped to the lowest level in the history of UNP politics - by committing the first ever 'E-Business crimes in Sri Lanka on internet and today Interpol is after them.

In fact to sling mud at Mangala Samaraweera what did they do?

They hired a professional to access the Internet 32 times on pornography and hijacked Mangala Samaraweera's Credit Card number to make payments through Internet to the tune of US $ 2000.

Cont. tomorrow